Construction of Vung Ro Oil Refinery set to begin

Construction of Vietnam’s Vung Ro oil refinery in the central province of Phu Yen is set to begin in June or July, after being delayed by more than two years due to land clearance difficulties. The refinery was previously reported to have a capacity of 4 million metric tons per year (MTPY) at the end of the first US$500-million-phase, and could potentially be expanded to 8 million MTPY at a later date. According to the Phu Yen Planning and Investment Department, cited by the Vietnam News Agency, the land clearance phase of the project is almost complete. Vung Ro is the country’s first wholly foreign-invested oil refining project and is being implemented by U.K.-based Technostar Management Ltd. and Russia’s Telloil. The facility will produce liquified petroleum gas (LPG), jet fuel, gasoline (petrol), diesel, polypropylene, benzene, and sulfur. (May 4, 2010)